Franklin Templeton Investments1 today introduced its Franklin LibertySharesTM range in Europe, with the launch of its first suite of smart beta ETFs……
Patrick O’Connor, head of Global ETFs
Franklin Templeton Investments today introduced its Franklin LibertySharesTM range in Europe, with the launch of its first suite of smart beta ETFs. The four equity smart beta ETFs will initially list on the Deutsche Börse (DB) and London Stock Exchange (LSE). The firm’s intention is to register the new smart beta ETFs for sale in other European countries subject to necessary regulatory approval process.
“Our strategic goal, three years in the making, has been to build a world class global ETF platform. Following successful launches in the US and Canada, we are very excited to bring our Franklin LibertyShares™ ETF platform to Europe.” said Patrick O’Connor, head of Global ETFs. “Our first European offerings aim to help investors achieve specific investment outcomes such as strong risk-adjusted returns, lower volatility and downside protection.”
The Franklin LibertyQ UCITS ETF range will offer investors access to the custom Franklin LibertyQ indices. These indices are constructed by custom weighting four factors – quality, value, momentum and volatility utilising an in-house custom proprietary model. The four funds are designed to seek higher risk adjusted returns and lower volatility than their investment universes.
The range includes two multi-factor equity funds which have a specific focus on quality stocks:
The Franklin LibertyQ Global Equity SRI UCITS ETF invests in stocks globally that are considered to be environmentally and socially responsible. It tracks the performance of the LibertyQ Global Equity SRI Index3 the constituents of which are selected from the MSCI AC World SRI Index3 using a multi-factor selection process with a focus on quality.
The Franklin LibertyQ U.S. Equity UCITS ETF invests in large and mid-capitalisation stocks in the U.S. and tracks the performance of the LibertyQ U.S. Large Cap Equity Index3 the constituents of which are selected from the Russell 1000® Index3 using a multi-factor selection process with a focus on quality.
And two income focused funds which invest in stocks demonstrating high and persistent dividend income:
The Franklin LibertyQ Global Dividend UCITS ETF invests in high quality stocks globally. It tracks the performance of the LibertyQ Global Dividend Index3 the constituents of which are selected from the MSCI AC World ex-REITS Index3 using a dividend persistence and yield screen followed by a quality screen.
The Franklin LibertyQ European Dividend UCITS ETF invests in high quality stocks in developed countries in Europe. It tracks the performance of the LibertyQ European Dividend Index3 the constituents of which are selected from the MSCI Europe IMI ex REITS Index3 using a dividend persistence and yield screen followed by a quality screen.
“Liberty for us means giving clients freedom of choice in their investment decisions, and as our client needs evolve, so do we. The introduction of the Franklin LibertyQ SharesTM range to European investors is a significant milestone for our business. We believe the addition of smart beta ETFs will complement our existing active management product ranges, and will offer our clients additional investment solutions and vehicles in which to construct their investment portfolio. The new funds will be fully supported by our considerable existing operations, technology and trading capabilities” said Vivek Kudva, managing director, EMEA and India
The Global ETFs Group
The portfolio management team will consist of San Mateo-based Dina Ting, vice president, senior portfolio manager of the Global ETFs group who joined Franklin Templeton in 2015; and London-based Lorenzo Crosato, vice president, ETF portfolio manager, who was hired on 14 August. Ting joined after 10 years at Blackrock where she led the institutional emerging markets team. Crosato also joins after over a decade at Blackrock where he was most recently a Director within their Beta Strategies team.
The Global ETFs team at Franklin Templeton is led by San Mateo-based Patrick O’Connor, head of Global ETFs, who prior to Franklin Templeton, spent 16 years at BlackRock in a number of executive positions. It also includes David Mann, Head of Global ETF Capital Markets, who oversees the capital markets team within the global ETF group. The capital markets team are responsible for working with both investors and broker-dealers to help ensure the firm’s ETFs trade as they were designed. Mann brings over 13 years of ETF industry experience.
The new Smart Beta ETFs traded on the Deutsche Börse on Thursday 7 September denominated in Euros. They begin trading on the LSE today, 8 September and will be denominated in GBP as well as their respective base fund currency.
Franklin LibertyQ U.S. Equity UCITS ETF
Franklin LibertyQ Global Equity SRI UCITS ETF
Franklin LibertyQ Global Dividend UCITS ETF
Franklin LibertyQ European Dividend UCITS ETF